Filing for bankruptcy is one of the ways in which an individual can pursue much needed debt relief. Not all debt can be eliminated or discharged during the bankruptcy process. Certain debts will remain your financial responsibility regardless of whether you file for Chapter 7 or Chapter 13. For example, the majority of tax debt is non-dischargeable. This means you will still be liable for all income tax debts incurred within the prior 3 years, as well as certain other types of tax debt, even after your bankruptcy case has been closed.
Older IRS debts may be eligible for discharge during a Chapter 7 bankruptcy. If you are able to pass a means test, filing for Chapter 7 could give you the opportunity to alleviate a significant financial stress for you and your family. If you are ineligible to file for Chapter 7 or you would rather file for Chapter 13, all old and new tax debt will be added to your repayment plan so that it can be paid back over an agreed-upon period of time and without having interest accrued. In certain circumstances, our firm may also be able to help you get rid of any liens that have been placed on your property due to unpaid back taxes.
Being weighed down by tax debt can be a very terrifying experience. It can also lead to further financial difficulties, as the IRS and other similar government agencies have with their rights the ability to garnish your wages, put a lien on your property and levy your bank accounts. If you are considering filing for bankruptcy in an effort to eliminate tax debt, it is vital that seek counsel from an experienced bankruptcy attorney before moving forward. Each case is different, and unless you obtain legal representation from an attorney who has your best interests in mind, you may end up with financial obligations that could have been discharged through the bankruptcy process.
The attorneys at our firm have more than 33 years combined legal experience. We have filed more than 10,000 consumer bankruptcy cases on our clients' behalf and we are ready to help you determine if bankruptcy may be right for you as well. We always give our clients an honest assessment of their situation and we will never sugarcoat your options or the expected outcome to your case. We are here to help you come up with a viable solution to your financial woes so that you can attain the fresh start you deserve. Call a Southfield bankruptcy attorney at Marshall D. Schultz today to find out more about what our firm can do for you.